Air-Conditioning & Refrigeration Systems Business OperationTo this end, as a niche manufacturer of air conditioning and refrigeration systems with a scale suited to its own management

冷熱事業本部

事業説明会

Air-Conditioning & Refrigeration Systems

Business Operation

1

June 6, 2011

Masahiko AriharaSenior Vice President

General ManagerAir-Conditioning & Refrigeration Systems

Mitsubishi Heavy Industries, Ltd. owns all intellectual property rights concerning these materials.

Contents

2

1. Introduction to Air-Conditioning & Refrigeration Systems

2. Summary of FY 2010

3. Prospects for FY 2011

4. Strategy for FY 2011 Business Plan

5. Specific approaches

6. Summary


1. Introduction to Air-Conditioning & Refrigeration Systems (1)

3

* Domestic -

Overseas sales ratios are based on FY 2010 results (consolidated). Market size: MHI estimate.

Air-conditioners (PAC/RAC)

Domestic

65%35%

[Global market size: 2010]approx 8 trillion yenplus hot water supply, heating market is 2 - 3 trillion yen

[Global market size: 2010]approximately 3 trillion yen

[Global market size: 2010]approximately 0.2 trillion yen

Centrifugal Absorption Liquid Chiller (CALC)

Transport refrigeration units (TRU)

PAC

Made-to-order products

Mass produced products

Automotive thermal systems (CAC)

RAC

“Beaver” Brand

Domestic-overseas sales ratio

Easily the largest share in domestic market

No. 2 in the world for scroll compressors and electric compressors

By far the top niche player in a large market




Domestic Overseas

Domestic OverseasDomestic

Overseas

Made-to-order products

Mass produced products

Easily the largest share in domestic market

[Global market size: 2010]approximately 0.2 trillion yen

11%

89%

9%

91%

23%

77%

Overseas


1. Introduction to Air-Conditioning & Refrigeration Systems (2)

Japan

China

Asia, Oceania

Americas

Europe

CAC

TRU

CALC

PAC/RAC

Sales by product

Total 158.1 billion yen

Total 158.1 billion yen

Sales by region

Production by region Staff by region

1%21%

32%

46%

Asia, Oceania

China

North America

Japan 2%

36%32%

30%

Japan

North America, others.

Asia, Oceania

China

* Figures shown are FY 2010, consolidated.

4


158.1137.4

2009 2010

2. Summary of FY 2010 (1)

159.1138.4

2009 2010

-2.3-9.9

2009 2010

5

Loss decreased by 7.6 billion yen compared to previous term(+3.7 billion yen from beginning of term estimate)

- Although unfavorable exchange rates and increase of material costs had effects, increased sales, cost reduction, and cuts in various expenses resulted in a significant improvement from the previous term.

Orders received Operating income Net sales

Increase of 20.7 billion yen from previous fiscal year. (+18.1 billion yen from beginning of term estimate)

- Recovery of PAC/RAC market - Increased production of car manufacturers.

unit: JPY billion

FY 2010 Beginning of term estimate

140.0

+19.1

billion yen FY 2010 Beginning of term estimate

140.0

FY 2010 Beginning of term estimate

-6.0

+3.7 billion yen

+18.1

billion yen

unit: JPY billion unit: JPY billion

Mitsubishi Heavy Industries, Ltd. owns all intellectual property rights concerning these materials. 6


The market for air-conditioners bottomed out in 2009 and began to rise in 2010, fueled by the economic recovery in Europe and America after the Global Financial Crisis, the effects of extreme heat wave of last summer, and the

growth in China and other emerging Asian markets.

The strategy for FY2011 is being pursued with a concentration on

the following:(1) Creation of a light, nimble business structure.(2) Operate as the dominant niche player.

With growth in demand and the recovery of automobile manufacturers, MHI’s net sales increased to 115% of the previous year. However, profitability was squeezed by the high yen rate, the price hike in copper and aluminum market. This was offset by increased amount of sales, cost cutting, and a reduction in expenses, and operating income improved 7.6 billion yen year on year.



100 116

2009 2010

100131

2009 2010

100 104

2009 2010

100 98

2009 20107

◇

Overall, demand is trending higher, led by emerging countries. RAC has shown especially large growth both in Japan and overseas. In addition, in China, the world’s largest market, MHI’s exclusive sales network K-POINT increased the number of dealers beyond the original plans.

(144 stores as of end May, 2011)

Sales index of 2010 when 2009 = 100 (results) PAC/RAC

◇

With the rebound in the production of automobile manufacturers, electric compressors for EV and HEV for both domestic and overseas markets have grown. Have also

succeeded in developing new customers in emerging countries. Also continuing sales activities for new European customers.

* EV/HEC = Electric Vehicles / Hybrid Electric Vehicles

CAC

◇

Although the truck subsidy system was terminated, the domestic truck refrigeration unit (TRU) market grew to 104% of the previous year, supported by steady demand for freezer and refrigerated trucks. MHI maintained its leading domestic share by expanding its sales with the introduction of a new series of compact, lightweight, high-performance TRU with low operating noise all those achieved by a new 3D compressor.

TRU

◇

Limited investment by IT, semiconductor and home appliance manufactures due to the recession caused a considerable contraction in the domestic centrifugal chiller market. Net sales decreased, although MHI retained the largest market share. However, orders increased, with orders from Sky Tree in Japan, and from Heart of Doha, Qatar, among others. In addition, the world’s first centrifugal-driven Water to Water Centrifugal Heat Pump ETW (Heat Recovery Type), was released.

CALC


3. Prospects for FY 2011 (1)

159.1 170.0

200.0

240.0

2010 2011 2012 2014

-2.3

2.04.0

11.0

2010 2011 2012 2014

8

Orders received Operating income Net sales

(actual result)

158.1170.0

200.0

240.0

2010 2011 2012 2014(actual result)

unit: JPY billion unit: JPY billion unit: JPY billion

FY 2014 11.0 billion yen

-

Improve earnings based on increased sales and cost-cutting activities. (actual result)

FY 2014 240.0 billion yen

- Expand sales focusing on high- performance models, capitalizing on global move to reduce CO2emissions.

(actual result)


3. Prospects for FY 2011 (2)

2010 2011

9

PAC/RAC

CAC

TRU CALC

◇ PAC/RAC -

Respond to China and Asian emerging country demand and aim to boost market share in existing markets of Europe and Japan.

-

Started sales of commercial-use heat pump-type water heater to respond to wide range of demand from household to industrial use.

◇ CAC-

Although the decrease of auto production is expected following the Great East Japan Earthquake, MCC in the US is scheduled to resume production this autumn, and investment is planned to bolster production of electric compressors for EV and HEV.

◇ TRU -

Almost all models had undergone model changes by the end of previous year. Concentrating on expanding sales of these energy saving, high-performance models.

◇ CALC -

Focusing on expanding the overseas market as well as continuing the expansion of service business in the domestic market.

◇Overall - On the whole, increase in sales achieved in overseas business, mainly with

PAC/RAC and CAC. - Maintain and expand domestic share of TRU and CALC as the base, and

focus especially on overseas deployment of CALC.

Sales index forecast for 2011 when 2010 = 100

106

112

104

117

2010 Consolidated Sales Forecast for Air- Conditioning & Refrigeration Systems


4. Strategy for FY 2011 Business Plan

10

輸冷

空調

■ Basic Policy -

Taking advantage of global environmental regulations as a rare opportunity, promote global sales of high-performance, high value-added products that make a major contribution to environmental conservation, and develop a business that will play a role in MHI’s energy and environmental business.

-

To this end, as a niche manufacturer of air conditioning and refrigeration systems with a scale suited to its own management resources, MHI will work to

acquire and maintain its position as the dominant niche player

in specific business domains.

-

To achieve a low-carbon society, enter the environment and energy fields (Air /Water to Water Heat Pump, CAC for EV/HEV), which are growing around the world.

-

Change from independent management to cooperation with partners to accelerate business development and disperse business risks.

Growth process

-

Convert fixed costs to variable costs using overseas facilities (reform of production formation).

-

Shift from management based on sales/profit to a diversified management structure that includes B/S and C/F (adopt ROIC as a management indicator).

Reform process


5. Specific Approaches (1) Reform process (i) FY 2010 “Reform process”

(Presentation material for Business Operation Meeting for FY 2010)

11

Reform of production structure

■ Pursuing the world’s optimum production-

Use overseas facilities that can flexibly respond to changes in demand.

Convert fixed costs to variable costs.-

Improve production of air-conditioners at overseas facilities.(Global sourcing from MACO and China-

regional sourcing from MHAQ)

-

Continue to increase the local

sourcing ratio at overseas plants.

-

Partial outsourcing for spare parts supply.

Japan

MHAQ (China)

MJA (China)

MACO (Thailand)

MCC (USA)

THACOM (Thailand)

* The yatai system: A production system in which, in principle, one worker assembles a product in a cell location, which adds flexibility to production schedule / production volume changes.

■ Inventory reduction-

Supply chain rationalizationBuild a system of direct delivery from overseas plants to distributors in each market.

-

Shorten production lead time through innovative activities in manufacturing in the entire company. (Application of the yatai system of MACO to TRU products).

■ Fund efficiency improvement-

Share investment with business partners by reconsidering the make-or-buy decisions.

-

Collect funds earlier by reducing lead-time.

Adopting reforms to optimize production and improve fund efficiency

ROIC improvement


5. Specific Approaches (1) Reform process (ii) Reform of Production Structure

12

MACO(Thailand)

Concentrate on production of PAC and RAC global models, except for China.

MHAQ(China)

Shift global model PAC to MACO, continue production of PAC for China.

Biwajima(Aichi Prefecture)

Shift global model PAC to MACO, continue production of TRU and compressors.

MJA(China)

Continue production of RAC for China.

PAC/RAC production

2009 2010 2012

100 111 128

PAC/RAC production

2009 2010 2012

100 100152

PAC/RAC production

2009 2010 2012

100141

200PAC/RAC production

Concentrate production of Concentrate production of ““global model airglobal model air--conditioner products, except for Chinaconditioner products, except for China”” from from Japan (Japan (BiwajimaBiwajima) and China (MHAQ) to Thailand (MACO) and achieve production ) and China (MHAQ) to Thailand (MACO) and achieve production efficiency and cost reduction. efficiency and cost reduction.

2009 2010 2012

100 11338

Production shift this time

Globalmodel

Chinamodel

Globalmodel

Chinamodel Rotary Scroll

THACOM

MHAQ ○

MJA

China

China

Thailand

Thailand

MACO ● ●

Compressor

●

●

Biwajima ○

PAC RAC

Japan

●

●

Figures in chart are index with 2009 as 100

Production shift this time


5. Specific Approaches (1) Reform process (iii) ROIC Improvement

10085

75

2009 2010 2011

100117

2010 2011

13

Efforts are focused mainly on improving production lead time to Efforts are focused mainly on improving production lead time to reduce inventory. reduce inventory.

Months of inventory held Total asset turnover Index with 2009 as 100 Index with 2010 as 100

Details of activity: 1.

Shift from make-to-stock production to made-to-order production with an inventory cover system using RINKS (Refrigeration Integrated Keikaku

System), a production management system developed jointly by Air-Cconditioning

& Refrigeration Systems and Technology & Innovation Headquarters. 2.

Adopted Yatai production , instead of line production, enabling a flexible response to fluctuations in demand. (horizontal deployment of production method adopted at MACO (Thailand)).


5. Specific Approaches (2) Heat Pump Business (i) FY 2010 “Growth process (1) Heat Pump”


14

Heat pump hot water supply

-

High-performance products at the highest level offering a variety of applications from household to industrial use will be provided.

-

MHI sells household heat pump hot water supply systems in Europe in cooperation with NIBE, the large heater manufacturer.MHI also seeks collaboration

with major power companies and local heat pump manufacturers.

-

A dedicated sales team will be set up to boost heat pump sales. Group and power companies will implement collaborative projects.

Centrifugal chillers

-

In Europe, started sales cooperation with multiple partners and received inquiries for MHI turbo chillers for chillers for power plants abroad.

-

In Asia, the Singapore office will lead the effort to increase sales to serve demand for chiller replacement through service activities primarily for existing Japanese customers.

-

For customers who use the products for a relatively long period of time, MHI’s high-

efficiency units have an advantage in LCC evaluation compared with cheaper overseas products.

LCC: Life Cycle Cost refers to the total cost including

the initial cost and running cost.

Household use Industrial use ‘09 ‘14

European heat pump market

Approx. 1.7 times

ETI-40ES

Achieved COP 7.0., the world’s highest efficiency

400Rt, cold water 17ºC/7ºC

‘09 ‘14

CALC overseas businesses

Approx. 4.5 times

*

Household heat pump hot water supply systems heat water by collecting heat in the air just like air-conditioners, which allows a substantial reduction in CO2

from the conventional combustion water heaters, Consequently, they are expected to experience rising demand as energy saving products.

Focus on air/water to water heat pump hot water supply systems and centrifugal chillers, which are currently niche but which will be growth products in the future.


5. Specific Approaches (2) Heat Pump Business (ii)

Industrial use 627 kW~

Waste heat recovery warm water heat pump

ETW(R134a)

Household use for Europe 8-16 kW

~ 8 kW 9 kW (max 11 kW)

~ 16 kW

Cooling, heating and hot water supply systemAir heat source heat pump hot water supply

Industrial use 30~480 kW

Industrial use CO2

hot water supply heat pump

Nick name: “Q-ton”

(CO2

, R744)

(30 kW x 16 units)

By shifting from conventional combustion (boilers, gas systems) By shifting from conventional combustion (boilers, gas systems) system to heat pump (electric) system to heat pump (electric) system, substantial COsystem, substantial CO 22 reductions and energy savings can be achieved. With a product lreductions and energy savings can be achieved. With a product lineine--up up ranging from household to industrial use, look to expand the busranging from household to industrial use, look to expand the business. iness.

Compared to heavy fuel oil boilers:

Energy saving: 40% less , CO2reduction: Approx. 70% lessCompared to heavy

fuel oil boilers:

Energy saving: 70% less *, CO2 reduction: Approx. 70% less

*

Including 30% reduction in night time electricity unit price.

Developed a heat pump hot water supply system fitted with the world’s first new 2-stage scrotary

(screw-rotary) compressor using CO2

as refrigerant. This unit maintains its performance even down to an external temperature of minus 7ºC, and can be used down to external temperatures of minus 25ºC. In addition, achieved intermediate season COP of 4.3, leading the industry in the 30 kW class, with high efficiency year round.

By integrating “scroll,”

which is efficient with a high pressure ratio, and “rotary,”

efficient with a low pressure ratio into one unit, achieved high efficiency under all operating conditions.

Scrotary compressor

Improved performance under low external temperatures by increasing

coolant recirculation amount.

(R410A)

Adoption of gas injection construction


Feature 2

Uses COUses CO22

, a natural coolant, and has achieved a , a natural coolant, and has achieved a COP 4.3 rating, leading the industry in the 30 kW COP 4.3 rating, leading the industry in the 30 kW class.class.

The The 30 30 kW rating is exempted from High Pressure kW rating is exempted from High Pressure Gas Safety Act restrictions.Gas Safety Act restrictions.

Feature 3

By connecting a maximum of 16, 30 kW units, By connecting a maximum of 16, 30 kW units, able to respond to a maximum of 480 kW hot able to respond to a maximum of 480 kW hot water loadwater load

Feature 1

Technological breakthrough inTechnological breakthrough in

operating performance operating performance under low external temperature conditions under low external temperature conditions with the with the adoption of two stage adoption of two stage ““ScrotaryScrotary””

COCO22

compressor.compressor.

Feature 4

Suitable for cold weather regions where heat pump hot water systems are uncommon.

Excels in both energy saving and environmental friendliness. Global warming coefficient:

CO2 = 1 R410A = 2090

Combines the strengths of broad application with ease of after-sales service.

5. Specific Approaches (2) Heat Pump Business (iii)-1


Improved operability Improved operability with the adoption with the adoption of a touch panel type remoteof a touch panel type remote

116 6 unit coupled control is possible, making unit coupled control is possible, making it adaptable for large facility use.it adaptable for large facility use.

Compatible with remote monitoring Compatible with remote monitoring system!system!

Allows quick response to failures and by Allows quick response to failures and by monitoring running data, enables user to monitoring running data, enables user to schedule the parts replacement in advance.schedule the parts replacement in advance.By analyzing operation log, energy By analyzing operation log, energy savings proposals suited for each season savings proposals suited for each season may be made.may be made.

Feature 7

Feature 5

Feature 6Touch panel controller

5. Specific Approaches (2) Heat Pump Business (iii)-2


Use: Boiler water feed humidification

Equipment outline:30 kW x 1 unit + Heat exchanger

Installed location: Hokuriku area

A low external temperature, high humidity area, characteristic to the coastal areas facing the Sea of Japan.

A very cold area where the highest temperature of the day below minus 20ºC is not uncommon.

An area subject to very heavy snow in Tohoku.

Field test being conducted at three locations, focused on cold weather locations.

5. Specific Approaches (2) Heat Pump Business (iv)-1

Use: Hot water supply for kitchen and wash rooms

Equipment outline:30 kW x 1 unit + Heat exchanger

Installed location: Doto area of Hokkaido

Use: Hot water supply for kitchen and bath

Equipment outline:30 kW x 1 unit + sealed tank

Installed location: Northern part of Iwate Prefecture


[System configuration]30 kW heat source machine: 1 unitSealed hot water holding tank:

500 liters x 5 units[Use]Hot water supply for kitchen and wash rooms

Around the field test site, Around the field test site, DotoDoto

area, Hokkaido area, Hokkaido

5. Specific Approaches (2) Heat Pump Business (iv)-2


5. Specific Approaches (2) Heat Pump Business (v)

Performance does not deteriorate until the outside temperature falls below minus 7ºC

16

18

20

22

24

26

28

30

32

-25 -20 -15 -10 -5 0 5 10 15 20 25External temperature (ºCDB)

Hea

ting

abili

ty (k

W)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

CO

P(-

)

30kW-7ºC

[ Outlet hot water temp: When outlet is 90ºC at inlet water of 5º ]

Conventional image

Able to supply 90ºC hot water even at minus 25ºC

Conventional image

COP2.8-7ºC


5. Specific Approaches (2) Heat Pump Business (vi) -1

■Influence of the Great East Japan Earthquake on heat pump hot water system 1.

With the instability of power supply within Japan, there are risks of adverse conditions confronting efforts at expansion, especially in the Kanto area.

2.

Globally however, the shift from boilers (combustion type) to heat pump hot water supply (electric type) to cut down CO2

is steadily advancing, and there is no change to the fact that the global market is on a growing trend.

3.

With its high energy conservation and CO2

reduction effect, the drive to expand sales for “Q-ton,”

the second to none product, especially in the very cold areas,

through collaboration with boiler manufacturers, will continue, using diverse sales and service routes such as energy conservation consultants, engineering companies, local air conditioning and plumbing contractors, and others.

4.

MHI has selected Europe and Korea as initial areas for promoting

the expansion of sales, to make up for the headwind in Japan.


5. Specific Approaches (2) Heat Pump Business (vi) -2

[China] Warm water/hot water market is large but

priority is low for the following reasons:

-

Small energy conservation merit (difference between fossil fuel and electricity cost).

-

Unstable infrastructure (voltage fluctuation).

-

Boiler cost is extremely low.

[China] Warm water/hot water market is large but

priority is low for the following reasons:

-

Small energy conservation merit (difference between fossil fuel and electricity cost).

-

Unstable infrastructure (voltage fluctuation).

-

Boiler cost is extremely low.

China: 16%

Europe: 47% North America:

29% Japan, etc: 8%

[Europe] (1)

Start sales from December 2011.(2)

Plan to send first sales promotion team during June-July, 2011 for market survey and sales promotion activities.

(3)

Key sales promotion targets are UK, France, Germany Spain, and Sweden, where energy conservation advantages can be expected.

[Europe] (1)

Start sales from December 2011.(2)

Plan to send first sales promotion team during June-July, 2011 for market survey and sales promotion activities.

(3)

Key sales promotion targets are UK, France, Germany Spain, and Sweden, where energy conservation advantages can be expected.

[North America]Warm water/hot water market is large but

priority is low for the following reasons: -

Regulatory barriers are high.-

Sales and service network not established.

-

Boilers are popular and their price is low.

[North America]Warm water/hot water market is large but

priority is low for the following reasons: -

Regulatory barriers are high.-

Sales and service network not established.

-

Boilers are popular and their price is low.

[Korea] (1)

The same specification as the Japanese market can be applied to respond to the market.

(2)

Of the agents for PAC/RAC and CALC, cooperation is being made with companies that are able to design, construct, and maintain the system and promotion is conducted.

[Korea] (1)

The same specification as the Japanese market can be applied to respond to the market.

(2)

Of the agents for PAC/RAC and CALC, cooperation is being made with companies that are able to design, construct, and maintain the system and promotion is conducted.

22


5. Specific Approaches (3) Automotive Thermal System operations (i) FY 2010 “Growth process (3) Automotive Thermal Systems”

66

660200

660

‘09 ‘18

23

-

Addition of volume by the global compact car program of auto manufacturers.

-

Expand into emerging countries where new demand is set to rise.

-

Sustained support for existing customers to gain additional programs and secure next programs.

-

Win business from major automakers.-

Approach new automakers that plan to produce EV/HEV.

QS Compressors (scroll)

-

Promote as an EV/HEV-

compatible heating device together with electric compressors.

-

Focus on development for small packaging, performance improvement, weight reduction, and cost reduction.

Sales of MHI’s automotive thermal systems

Market share of MHI Scroll Compressors

Market share of MHI electric compressors

Scroll compressor market and MHI’s share

Demand for Scroll Compressors

Demand for electric compressors

Market forecast for CAC scroll and electric compressors

(Unit: 10,000 units)

(MHI estimate)

Promote the scroll compressor (QS, electric driven), currently in the minority with automotive thermal systems but expected to grow in the future.

Electric water heater Electric compressors (scroll)

20%

7%

35%

50%

‘09 ‘18


5. Specific Approaches (3) Automotive Thermal System Operations (ii)

24

Currently gearing up to win orders for QS compressors (belt drivCurrently gearing up to win orders for QS compressors (belt driven), electric compressors, and PTC en), electric compressors, and PTC heaters for ecoheaters for eco--cars (EV and HEV), demand for which is expected to keep growing.cars (EV and HEV), demand for which is expected to keep growing. Also enhancing Also enhancing production facilities. In addition, we have completed developmenproduction facilities. In addition, we have completed development of a heat pump system that enables t of a heat pump system that enables cooling and heating under external temperatures of minus 10cooling and heating under external temperatures of minus 10ººC. Sales will now be getting underway.C. Sales will now be getting underway.

Have obtained orders from emerging countries such as India and Brazil. Developing new customers for Asia and China, etc.

For emerging countries

Europe, US and Japan market

Concentrate on increasing share for US and domestic clients. (Large order won for USA). Succeeding with European manufacturers will be the big task going forward.

Plan to upgrade production facilities for electric compressors for EV and HEV, where production is rising, by the second half of FY 2011

Matsusaka Plant MCC (USA)

Suspended production of compressors for automotive thermal systems from 2009 but having won a large order, will resume production in 2011.


5. Specific Approaches (4) Air Conditioning Operations (i) FY 2010 “Growth Process (2) Air Conditioning Operations”


25

-

Define a high-end product strategy and establish brand strategy. -

Increase the number of exclusive dealers (K-Point) (200 locations by 2012).

-

Increase the number of products for residential houses of the new affluent class, in addition to buildings and luxury homes.

-

Establish a new AC & refrigeration company (May 2010 –) -

Adopt personnel and wage systems geared to local conditions in China.

-

Employ a Chinese person as the general manager of organization

Expand air conditioning operations in China Sales channels in China

Strengthen sales promotion [K-Plan]

‘10 ‘14

Approx. 1.7 times

RAC PAC, KX

MJA

K-Point

MHAQ

MACOMHIAS

Mass retailers

General

agency

Equipm

ent dealers, stores

Clients, custom

ers

Employ companies from different

industries Offer via a

franchise system

(Thailand)

(China)

(China)

(China)

Promote multi-function systems with high added value in the air-conditioner market in China, which is set to grow in the future.

Establish a new AC & refrigeration company (May 2010 –)

Air-conditioner sales in China


5. Specific Approaches (4) Air Conditioning Operations (ii)

50

100

150

53

120

200

26

MHIMHI’’s exclusive sales network Ks exclusive sales network K--POINT is growing as planned, with 144 stores opened as of POINT is growing as planned, with 144 stores opened as of end of May 2011. end of May 2011.

March 2010 March 2011 March 2012

Actual Plan

Actual Plan

Plan

Forecast


6. Summary

27

- Aim to be an air conditioning and refrigeration manufacturer that plays a role in MHI’s environment business and contribute to protecting the environment.

- Establish a light, nimble structure, operating as a dominant niche player

Thank you very much for your attention.

Mitsubishi Heavy Industries, Ltd. owns all intellectual property rights concerning these materials. 28当資料に関するあらゆる著作物･知的財産は三菱重工業株式会社に帰属します。

Forecasts regarding future performance in these materials are based on judgment made in accordance with information available at the time this presentation was prepared. As such, those projections involve risks and insecurity. For this reason, investors are recommended not to depend solely on these projections for making investment decision. It is possible that actual results may change significantly from these

projections for a number of factors. Such factors include, but are not limited to, economic trends affecting the Company’s operating environment, currency movement of the yen value to the U.S. dollar and other foreign currencies, and trends of stock markets in Japan.

Documents

Air-Conditioning & Refrigeration Systems Business OperationTo this end, as a niche manufacturer of air conditioning and refrigeration systems with a scale suited to its own management